Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

S&P cuts Softbank rating after Sprint deal clears

[July 09, 2013]  TOKYO (AP) -- Standard & Poor's has cut Softbank's credit rating to reflect increased financial risks following clearance of its $21.6 billion acquisition of Sprint Nextel Corp.

S&P says Monday it cut Softbank's rating to BB+, which is the highest junk grade rating, from BBB. Softbank shares fell 3.4 percent in Tokyo.

The ratings agency says Softbank's debt will increase substantially as a result of buying 78 percent of Sprint.

The Federal Communications Commission approved the Sprint deal on Friday.

S&P says Sprint, the third biggest U.S. wireless carrier, has weak cash-flow and high debt while Sprint's acquisition of Clearwire will add to the financial burden on Japan's Softbank.

But S&P expects Sprint's profitability to improve under its new owner and says Softbank is supported by its strong market position in Japan.

[Associated Press]

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.